March 21, 2006
Options trading
My first foray into options trading. I had selected Kohl's (KSS) for investing after doing some research on 'retail-stores' sector. The prospects for Kohl's look good for the next 12-18 months. Instead of buying stock, I decided to give a try to options investing. You can get a bigger bang for your buck (better % return) with options. The details of this can be found on various options websites around the net.
In February, I bought a call option (OSSAJ.X) for strike price of $50 expiring in Jan 2007. It was priced at $4.50 and now it is $6.70. That is 44% up in just over 1 month after commissions. I'll probably sell it in the early 4th quarter of 2006, hopefully, for even better profit. After this positive experience (at least till today) I definitely will look for other opportunities to trade options in the future.
Posted by Parag at March 21, 2006 12:52 PM
